gautham,
Initial knee jerk reactions are often difficult to decipher. I recall even after stellar q1 results for torrent stock corrected next day and then after some consolidation took off.
I think one of the reasons for the correction could be concerns about FY 17 and beyond as the pipeline of products in US for torrent is perceived to be not so great.
But my take is that after listening to the concall the co seems to doing quite well in the base business in the US and with increased shipments from the Dahej facility, the base business might get additional filip.
The company’s aspirations in the domestic business also seem to be quite high and even if part of it materialises there could be much higher profit growth as compared to sales growth.
And again the Dahej facility could facilitate the company’s business in Germany and europe due to enhanced capacities.
Valuing the company based on fy 16 numbers would not be the right way. In fact its very difficult to value a company where we know bcos of off and on US blockbuster molecules earnings will be lumpy.
But looking at the kind of batting the company has done on a favorable wicket (abilify in the US), it seems to have done a brilliant job and increases the confidence as an investor in the company’s ability to exploit favorable situations in the US market.
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